OTTAWA — Canada's merchandise trade surplus was $1.1 billion in September as growth in exports, boosted by wheat and crude oil, outpaced a rise in imports, Statistics Canada said Thursday.
The agency also revised its reading for August to show a surplus of $550 million compared with its initial report of a $1.5-billion surplus.
"Canada posted its ninth straight merchandise trade surplus in September, with a depreciating loonie providing a lift to exports," Bank of Montreal economist Shelly Kaushik wrote in a report.
"Unfortunately, the latter also adds to domestic inflation pressures, which will keep the Bank of Canada on alert. While softening commodity prices have weighed on nominal flows in recent months, trade volumes look to add to growth in the third quarter."
Statistics Canada said total exports for September rose 1.3 per cent to $66.4 billion.
Exports of farm, fishing and intermediate food products gained 16.7 per cent at nearly $4.9 billion as exports of wheat soared 65.2 per cent in September.
Exports of energy products rose 1.9 per cent to $18.8 billion as exports of crude oil gained 4.0 per cent, boosted by higher volumes. Natural gas exports added 10.3 per cent.
Meanwhile, imports rose 0.4 per cent in September to $65.2 billion as a 22.7 per cent increase in pharmaceutical products helped lift imports of consumer goods 3.7 per cent to $13.7 billion.
Imports of industrial machinery, equipment and parts 4.1 per cent to reach a record high at $7.7 billion, while imports of energy products dropped 16.7 per cent to $3.8 billion.
Statistics Canada said the average value of the loonie for September was 75.1 cents US, down 2.3 cents US compared with the average in August, the largest monthly drop since March 2020.
It noted that a large proportion of import and export transactions are done in U.S. dollars and must be converted to Canadian dollars when the trade statistics are compiled. The agency explained that when the Canadian dollar depreciates against the U.S. dollar, converted monthly trade values in Canadian dollars are higher.
Statistics Canada said exports when expressed in U.S. dollars were down 1.7 per cent in September, while imports were down 2.5 per cent.
In volume terms, it said total exports rose 1.7 per cent in September, while imports fell 0.8 per cent.
In a separate report, Statistics Canada said the country's monthly international trade in services deficit narrowed to $1.6 billion in September compared with a deficit of $1.8 billion in August as exports of services rose 2.3 per cent to $12.9 billion and imports of services edged up 0.5 per cent to $14.5 billion.
Canada's international trade in goods and international trade in services combined for a deficit with the world of $416 million in September compared with $1.2 billion in August.
This report by The Canadian Press was first published Nov. 3, 2022.
The Canadian Press
